Transport subsidies under review

Two inquiries are investigating student travel. SALLY EDSALL and PETER WALSH report.

In 2002-2003, the NSW Government will spend about $427 million on the School Student Transport Scheme (SSTS), which provides free transport to school for students who live more than about 1.5-2 kilometres from their school. The Vinson Inquiry received figures from the Department of Transport that indicated that across NSW, the 67 per cent of students who attend public schools receive 56 per cent of the benefits of the SSTS. In 1999, the average cost per student was $545 for a public school student, $593 for a Catholic school student and $584 for an independent school student. In rural areas, average subsidies would be higher than in urban areas.

In February 2002, the NSW Legislative Assembly Public Accounts Committee released a report of an inquiry it had conducted into the SSTS. It found that NSW provides free school travel to more than twice the proportion of students in any other state. More than 60 per cent of students receive free school transport in NSW, compared to less than 30 per cent in all other states except Tasmania, where it is just over 30 per cent. All other states place restrictions on eligibility -- for example, possession of a health care card, attendance at nearest appropriate school, or nearest public school, or geographical location (for example, rural or urban fringe areas).

The committee made several recommendations on how the cost of the SSTS could be limited. Many related to matters to do with the transport providers. One option canvassed included extending the minimum distance away from a school which would make a student eligible. Other options canvassed and rejected included using socio-economic criteria, or introducing a maximum distance.

One other recommendation was that schools should be given responsibility to control student transport budgets and for purchasing services. This is strongly objected to by Federation.

The position of Federation and of the NSW Federation of P&C Associations is that the cost should be met for a student to attend their nearest public school. This too was rejected by the committee on the basis that it would "limit parent choice of school".

The Vinson Inquiry into the Provision of Public Education in NSW recommended a basic entitlement based on travel to any school within a limited radius of home (without disadvantaging rural areas where the nearest school is a fair distance) combined with a socio-economic criterion for students choosing a more distant school. This might be evidence by, for example, possession of a health card, indicating receipt of Centrelink benefits.

No changes have been made as a result of either the Public Accounts Committee report or the Vinson Report. However, the NSW Government has commissioned a more wide-ranging report on public transport, known as the Parry Inquiry. An interim report was released on September 8. One of the key concerns identified was that students are eligible for, and apply for passes, and thus transport providers receive subsidies, whether or not the services are actually used. With respect to the SSTS it canvasses options which include capping the level of subsidies for each student, with the level of the cap varying on location and available transport services; capping the total amount the Government spends on the SSTS; and introducing a co-payment of $30 per student, indexed at the inflation rate.

Running parallel with the Parry Inquiry is another review into bus services in NSW (the Unsworth Review). Barrie Unsworth has made recommendations about the use of Smartcard technology to pay student transport on actual travel, as well as matters to do with contractual arrangements. Mr Unsworth also recommends introducing the $30 annual co-payment with "safety-net" exemptions, as well as picking up the Public Accounts Committee recommendation on making schools responsible for transport budgets and purchasing services.

Federation is preparing submissions to the Parry and Unsworth inquiries. Individuals and other groups are also encouraged to make submissions.

Details of the Parry Inquiry, including how to make a submission, can be found at www.transport.nsw.gov.au/ministerial-inquiry/ Details of the Unsworth Review, including how to make a submission, can be found at www.transport.nsw.gov.au/busreview/terms.html

Sally Edsall is a Research Officer and Peter Walsh is a Relieving Industrial Officer.

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November 2003 contents